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The risk of their default is supposed to be built into the price. On the other hand they suffer short term reputational damage which could prevent them from get

The risk of their default is supposed to be built into the price. On the other hand they suffer short term reputational damage which could prevent them from getting future loans, but they are in survival mode so that doesn't really matter right now. I guess it is unpopular to say but I like WeWork and I'm rooting for them. We were very very early users before even their NYC Flagship at 175 Varick. Those early days were really memorable. They provided something no one else did. I think the model makes sense over the long term with some austerity, so I'm rooting for them.

CPLX 3y ago
Me too. It’s just a fantastic product. Spend 30 seconds interacting with the inept criminal organization that is Regus/Spaces and you’ll appreciate WeWork even more.
- aenis 3y ago
  Can you elaborate? I rented a few rooms with Regus (in Europe), and it worked just fine.
  - CPLX 3y ago
    Their billing is horrible and intentionally confusing and exploitative and borderline criminal and it is deeply embedded in their culture. Context: https://www.google.com/search?rls=en&q=regus+billing+reddit&ie=UTF-8&oe=UTF-8 https://www.google.com/search?rls=en&q=regus+billing+reddit&...
afavour 3y ago
I like WeWork but I’m not sure I’m rooting for them. They pioneered the model, they got in over their skis and expanded too fast and took their eye of the ball with a million distractions. They deserve failure. I believe the model does work and that some other company content to work on a smaller scale will find plenty of success with it. Here in NYC there are already a number of them.
- coffeebeqn 3y ago
  They had zero moat. I’ve also been to a few spaces that were basically wework clones on the amenities and location but slightly better price and probably less overhead so maybe it’s sustainable
  - smcin 3y ago
    WeWork did have a small moat, namely the worldwide membership plan ("WeWork All Access") to 500+ locations incl. conference room. Even given they massively overextended on real-estate (by paying insane commissions up to 50%) and are about to go boom, it (is/)was still good value in the short term, if you change(d) location often. (Regus similarly has access to lounge, coworking and office memberships worldwide 4000 locations).
Jedd 3y ago
> They provided something no one else did. Is that true? Perhaps Wework did / does some unique things I'm unaware of. As per [0] - co-working spaces started ~25 years ago, and by the time WeWork was founded (2010) there were at least 300 co-working spaces operating in the USA. [0] https://helio.se/en/magazine/the-colorful-history-of-coworking-from-the-90s-until-today https://helio.se/en/magazine/the-colorful-history-of-coworki...
- michaelt 3y ago
  I've never been to a WeWork but traditional co-working spaces were kinda grim. They'd often provide pretty bare-bones service - no fancy coffee, just a fridge where everyone had to label their own milk. They'd have mostly small/single-person offices which people worked in alone with the door closed. I've heard some people find a 'community' at wework offices, a bunch of closed doors of course provides no such thing. And they mostly rented space to permanently small businesses, like one-person accountancy companies. Which is a fine way to make a living! But co-working spaces weren't a place you'd expect to network with people whose businesses were going to the moon.
- carrja99 3y ago
  I actually preferred all the independent co-working spaces before wework. They had their own unique character while wework was always a filing cabinet for office workers with no special character to them.
- nikanj 3y ago
  They rewrapped an existing concept in a startup-esque vibe and thus got a massive multiplier on their valuation.
hacliff 3y ago
I was in Varick too! great memories of that place, it certainly felt like they were onto something back then.
automatic6131 3y ago
> They provided something no one else did Yes, they provided more office space for you on Softbank's dime. Funnily enough, this isn't sustainable. Of course the model, broadly speaking, makes sense. There are loads of boring, CRE rental providers. e.g. Regus. Which never had valuations in the billions, nor billions of VC inflow to subsidise the offering. WeWork is piss poor execution on a thin margin business.

CPLX 3y ago

Me too. It’s just a fantastic product. Spend 30 seconds interacting with the inept criminal organization that is Regus/Spaces and you’ll appreciate WeWork even more.

aenis 3y ago
Can you elaborate? I rented a few rooms with Regus (in Europe), and it worked just fine.
- CPLX 3y ago
  Their billing is horrible and intentionally confusing and exploitative and borderline criminal and it is deeply embedded in their culture. Context: https://www.google.com/search?rls=en&q=regus+billing+reddit&ie=UTF-8&oe=UTF-8 https://www.google.com/search?rls=en&q=regus+billing+reddit&...

afavour 3y ago

I like WeWork but I’m not sure I’m rooting for them. They pioneered the model, they got in over their skis and expanded too fast and took their eye of the ball with a million distractions. They deserve failure. I believe the model does work and that some other company content to work on a smaller scale will find plenty of success with it. Here in NYC there are already a number of them.

coffeebeqn 3y ago
They had zero moat. I’ve also been to a few spaces that were basically wework clones on the amenities and location but slightly better price and probably less overhead so maybe it’s sustainable
- smcin 3y ago
  WeWork did have a small moat, namely the worldwide membership plan ("WeWork All Access") to 500+ locations incl. conference room. Even given they massively overextended on real-estate (by paying insane commissions up to 50%) and are about to go boom, it (is/)was still good value in the short term, if you change(d) location often. (Regus similarly has access to lounge, coworking and office memberships worldwide 4000 locations).

Jedd 3y ago

> They provided something no one else did. Is that true? Perhaps Wework did / does some unique things I'm unaware of. As per [0] - co-working spaces started ~25 years ago, and by the time WeWork was founded (2010) there were at least 300 co-working spaces operating in the USA. [0] https://helio.se/en/magazine/the-colorful-history-of-coworking-from-the-90s-until-today https://helio.se/en/magazine/the-colorful-history-of-coworki...

michaelt 3y ago
I've never been to a WeWork but traditional co-working spaces were kinda grim. They'd often provide pretty bare-bones service - no fancy coffee, just a fridge where everyone had to label their own milk. They'd have mostly small/single-person offices which people worked in alone with the door closed. I've heard some people find a 'community' at wework offices, a bunch of closed doors of course provides no such thing. And they mostly rented space to permanently small businesses, like one-person accountancy companies. Which is a fine way to make a living! But co-working spaces weren't a place you'd expect to network with people whose businesses were going to the moon.
carrja99 3y ago
I actually preferred all the independent co-working spaces before wework. They had their own unique character while wework was always a filing cabinet for office workers with no special character to them.
nikanj 3y ago
They rewrapped an existing concept in a startup-esque vibe and thus got a massive multiplier on their valuation.

hacliff 3y ago

I was in Varick too! great memories of that place, it certainly felt like they were onto something back then.

automatic6131 3y ago

> They provided something no one else did Yes, they provided more office space for you on Softbank's dime. Funnily enough, this isn't sustainable. Of course the model, broadly speaking, makes sense. There are loads of boring, CRE rental providers. e.g. Regus. Which never had valuations in the billions, nor billions of VC inflow to subsidise the offering. WeWork is piss poor execution on a thin margin business.